BNB plummets 11% as analyst worried Binance triggered "altcoin winter"

14 Jun, 2019
by Richard Allen
Price Action
BNB plummets 11% as analyst worried Binance triggered altcoin winter

The news regarding Binance’s announcement to launch an exchange specifically for US traders while barring them from its main platform has sparked concerns of an “altcoin winter” which could devastate altcoin valuations while Bitcoin continues rising.

Bitcoin saw a sudden price spike on Friday, pushing its price as high as $8,450. Meanwhile, Binance Coin has tanked hard with the coin seeing losses of 10.95% at the time of writing, bringing the price of BNB down to $31.16.

 BNB/USD chart provided by Tradingview

To make matters worse, trader Alex Kruger has warned that Binance’s decision may have had unintended consequences for the global crypto market.

US traders currently make up as much as 30% of Binance’s userbase. As such, he expects many small-cap altcoins listed on Binance to take a beating once the updated terms of service come into effect on September 12.

As if BNB wasn’t dealing with enough, CCN reports that, despite Binance considering their cryptocurrency a “utility token,” some analysts have argued that the US Securities and Exchange Commission is likely to classify BNB as a security. If this happens, BNB may not be usable on Binance.us.

On the opposite side of the scale, Bitcoin is up 2.92% at the time of writing with a value of $8,420.98.

BTC/USD chart provided by Tradingview

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